No state takeover for East Detroit school district

DETROIT, MI -- Michigan has emergency managers or other forms oversight in 13 struggling local governments and the state could soon intervene in more communities, but not in the East Detroit Schools.

After a review of the Eastpointe-based school district's finances, the state's Local Emergency Financial Assistance Loan Board met Monday and found that a takeover isn't necessary, according to the Associated Press.

The board found that district administration is making enough progress stabilizing finances on its own, AP reports.

Under the state's emergency manager law, if a local government is found to be in financial emergency, its elected body must choose between a state takeover, a consent agreement, mediation or bankruptcy.

The cities of Detroit, Flint, Benton Harbor, Allen Park and Hamtramck and the school districts of Detroit, Highland Park and Muskegon Heights are currently under emergency management.

Inkster and River Rouge and the Pontiac school district are under consent agreements with the state that call for financial reforms.

Pontiac and Ecorse were controlled by emergency managers for several years before being shifted to transition advisory boards earlier this year.